ISO has received approval of its filings introducing new ISO Risk Analyzer Homeowners by-peril rating rules in 13 states, with filings pending approval in several other states. The optional rules provide by-peril rating relativities for key homeowners rating variables. When used in conjunction with the current Risk Analyzer Homeowners environmental rating rules, insurers can benefit from more in-depth by-peril analysis of homeowners risks within their books of business.
ISO says both the by-peril rating rules and the combined all-perils environmental rating rules use output from Risk Analyzer Homeowners, a predictive model that develops expected losses at a much more refined geographic level than traditional territories.
With this latest enhancement, Risk Analyzer Homeowners makes available rating relativities by individual peril for several important homeowners rating factors, including Coverage A amount of insurance, deductible, and age of construction. There are nine peril categories: fire, theft and vandalism, lightning, liability, wind, water (non-weather related), water (weather-related), hail, and all other perils (excluding hurricane and earthquake). Insurers also have the option of using only the combined all-perils environmental rating rules, which have been available since June 2011.
ISO adds that it is filing the by-peril rating rules for insurers to use if they elect to license and adopt them.
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